maks25 wrote:ugh..I have another exam at 1 today.
Can anyone explain the difference between the Harrod-Domar Growth Model and the Solow (neoclassical) model...that should take your thoughts off your LSAT grade lol.
Solow extended the Harrod–Domar model by:
Adding labor as a factor of production;
Requiring diminishing returns to labor and capital separately, and constant returns to scale for both factors combined;
Introducing a time-varying technology variable distinct from capital and labor.
The capital-output and capital-labor ratios are not fixed as they are in the Harrod–Domar model. These refinements allow increasing capital intensity to be distinguished from technological progress.
Credits to wikipedia. HTH